Bay City Mining,Inc

question 126

Multiple Choice

Bay City Mining,Inc.has a price of $20 a share,outstanding shares of 2.5 million,retained earnings of $1 million dollars,and a dividend yield of 2 percent.It has a price-earnings ratio of

• A)50,which is high by historical standards.
• B)50,which is low by historical standards.
• C)25,which is high by historical standards.
• D)25,which is low by historical standards.

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Definitions:

Average Total Cost

The total cost of production divided by the quantity of output produced; it includes both fixed and variable costs.

Average Total Cost

The total cost of production divided by the number of units produced, encompassing both fixed and variable costs.

Total Variable Costs

The sum of expenses that vary directly with the level of production or sales volume.

Marginal Cost

The amount of money needed to create an additional unit of a product or service.